Valuation of goodwill

rajesh (icsi) (26 Points)

12 November 2014  

1. Why Avg profit method is also called year purchase method?

2. In avg profit method why Avg profit is multiply to given data to find goodwill. Eg. Avg profit x 3 Times/4 times.

3. In weighted avg profit method Why profit is multiply with given weights.

4. difference between avg profit method and weighted avg method.